What is a Self Managed Super Fund
A self managed super fund is often referred to as a SMSF or “Do It Yourself” (DIY) super funds. Similar to other superannuation funds, self managed super funds invest contributions made by members, provide benefits to members when they retire and provide death benefits to beneficiaries in the event of a member’s death.
The main difference between a self-managed super fund and other types of superannuation funds is that the members of a SMSF are also the trustees, or directors of a corporate trustee. This means they are required to prepare and implement an investment strategy for their fund, accept contributions and manage the payment of benefits.
Self managed super funds also provide a broader investment choice than other super funds, with options such as direct property, managed investments and direct shares included.
The trustees (members) of a self managed super fund must appoint approved auditors, and may also choose to involve tax agents, accountants and financial advisors as well as administrators. But ultimately the legal responsibility for the fund’s ongoing compliance rests with the individual trustees.
WHAT ARE THE REQUIREMENTS OF A SELF MANAGED SUPER FUND (SMSF)?
- A SMSF must be maintained for the sole purpose of providing retirement benefits to the member. Investments must be entered into with a view to achieving a commercial rate of return, not for lifestyle or private purposes
- A SMSF must have fewer than five members
- All members must be trustees
- If your SMSF is a single member fund, you will need to appoint a company as trustee or a second person to act as an individual trustee
- No member of the fund can be an employee of another member of the fund, unless those members are related
- No trustee of the fund can receive any remuneration for services as trustee
- A SMSF can not lend money or give financial assistance to a member
- The SMSF cannot acquire an asset from a member of the fund, or any other person related to the trustee, with the exception of listed shares, managed funds, and business real property.
- SMSFs are prohibited from borrowing. There are some limited exceptions.
- Self managed super fund trustees are required to set out the fund’s objectives and to formulate an investment strategy to show how those objectives will be met. This must be in writing and regularly reviewed.
WHAT ARE THE ADVANTAGES OF SMSFs?
- Increased control over your retirement funds and how they are invested
- Wider investment choices than public offered funds
- Your SMSF can move with you from job to job, and from generation to generation
- Affords opportunities for estate planning and benefit payments
ARE THERE ANY DISADVANTAGES OF SMSF’s?
- Each trustee bears a high degree of responsibility to ensure all trustee duties are exercised in the best interest of fund members
- There is a risk of tax penalties for non-compliance, so it is necessary to have sufficient knowledge and expertise
- Running a SMSF can be time consuming and demanding
- SMSFs incur a range of additional costs, eg tax and regulatory return, administration, auditing of accounts, supervisory fees
Self Managed Super Fund Services
Our Self Managed Super Funds accountants offer a comprehensive SMSF service. At ASV Partners we have SMSF products and tailored services that are designed to adapt to your needs of running your self managed super funds.
Self Managed Super Funds Services Include:
There are many ways we help our clients including:
- SMSF Trustee company incorporation
- New SMSF fund establishment including deed preparation and ATO registration
- Daily administration and compliance management to new and existing funds,
- Or , we can offer year-end compliance only
- Daily SMSF Portfolio Administration Services
- Preparation and lodgement of your annual financial statements
- Financial and compliance audit services
- Documentation and implementation for benefit and all pension payments
- Self managed super funds Trust Deeds Upgrades
- Self managed super fund set up
- SMSF Strategic Technical Advice
Our SMSF Administration services include:
- Preparation of Annual Financial Statements
- Preparation of Income Tax Returns
- Annual Self Managed Super Fund Audit
- Reduction of paperwork volume for the SMSF trustees
- Freedom to conduct your own transactions
- Identify SMSF compliance issues as they happen
- Unlimited transactions
- Automatic SMSF trust deed upgrades when law changes
- Access to basic technical advice throughout the year
- Australian-based administration team
- Australian owned business
Self Managed Super Funds Borrowing
Our Chartered Accountants team, together with our associates can assist you with self managed super funds borrowing. There are multiple issues to consider for the trustees looking at self managed super funds borrowing strategies when buying property or borrowing through a superannuation fund.
The rules for self managed super funds borrowing are strict and it is important that you speak with a professional self managed super funds borrowing specialist.
To discuss the advantages and disadvantages of self managed super funds borrowing please feel free to speak to our team with regards to your current situation and the borrowing opportunities that are available to you through a Self Managed Super Fund.